Buhawind Energy, a joint venture between Copenhagen Energy and PetroGreen Energy Corporation of the Yuchengco group, is set to invest between (Euro) €8.0 billion to €12 billion (around Php 493.8 billion to Php 740.8 billion) in three offshore wind (OSW) projects in the Philippines.
Once completed, these projects located in Ilocos Norte, East Panay, and Northern Mindoro, are expected to add a total of 4,000 megawatts (MW) of renewable energy (RE) to the power supply.
In a Manila Bulletin report, Copenhagen Energy CEO Jasmin Bejdic shared that the first OSW project, which will have a capacity of 1,650 to 2,000 MW, will be constructed in Ilocos Norte and is expected to be completed by 2027. The two other projects, each with a capacity of 1,000 MW, will be built in Northern Mindoro and East Panay and are anticipated to begin commercial operations in 2030.
Bejdic provided insight into the estimated capital expenditures (CAPEX) per megawatt installation, stating that it would fall within the range of €2.0 million to €3.0 million. With a total of 4.0 gigawatts (GWh) in capacity, the projects would require a considerable investment amounting to 8 to 12 billion euros.
He also emphasized the importance of considering four critical metrics before initiating construction, namely the grid connection for power transmission, the offtake, the port infrastructure, and the permitting process.
As for grid integration, Bejdic also expressed concern about the delays caused by the backlog of OSW projects awaiting the outcome of its system impact study. He urged authorities to prioritize the projects that require immediate attention so that they can be implemented quickly, in order to “deliver the power required by the country.”
In terms of permits, President Marcos Jr. recently signed Executive Order No. 21 that fast-tracks the OSW permit using the Energy Virtual One-Stop Shop (EVOSS) platform. However, they are still waiting for detailed instructions on how the government will operate the system.
Currently, Bejdic expressed that they are working on studying the soil condition in order to grasp the process of building the port infrastructure. The joint venture is also measuring the wind resource potential of its project sites.